My SMSF

My SMSF – property guru Margaret Lomas

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Name: Margaret Lomas
Age: 53
Other members of the SMSF: Reuben Lomas

How long have you had your SMSF?

Around 15 years

Why did you start it up?

Initially we wanted better control over where our funds were invested, although at the time we probably weren’t as good at managing it as we are these days.

How big is it?

Around $1.3m, some of it geared.

Is it more or less difficult to manage than you thought it would be?

Initially it was more – designing an appropriate investment strategy and being prudent with the funds is a much more responsible job than most people think.  If you take the spirit of the legislation seriously, as trustee of the fund you should be investing in a broad range of asset classes, which consider the fund members’ individual investing strategy.  In truth, these days most people seem to set them up just so that they can use super funds to get into the property market.

Now that I have more experience as an investor, it is much easier for me to make those decisions, which result in a diversified fund.

Do you enjoy managing it?

Sometimes I do – it can be exciting, considering what is the best for my short and long-term goals. My husband and I are at different phases of our career, and I will be able to access my super (if required) in two years’ time (at 55) whereas my husband is only 44, and so he has a much longer investment time horizon.  Therefore this has to be considered when making any decision about where to invest fund contributions.

Are you pleased with its performance?

I was mortified when the funds’ managed fund investments performed so badly during and after the GFC, but now that there is a return to normality, I enjoy watching my future nest egg grow, as it is doing.

What is your asset allocation?

I have around 10% in cash, around 30% in managed funds across property securities and global equities and the rest divided between business real property and residential property (direct).

What are your favourite investments/stocks and why?

Property, because it’s what I do 🙂

What investments do you have outside of superannuation?

I own more than 35 properties and a small amount of direct shares and managed funds.

Do you use an advisor or any kind of service provider?

No, I use myself 🙂 although my accountant helps me with the technicalities.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.

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